By Jihoon Lee

SEOUL (Reuters) – South Korea’s acting President Choi Sang-mok on Wednesday expressed hope for a swift agreement in parliament regarding an additional budget to aid an economy facing weakened domestic demand and rising external uncertainty.

> “I hope that parliament reaches an agreement on the basic principles regarding the supplementary budget as soon as possible,” stated Choi, who currently serves as finance minister.

On Tuesday, Kweon Seong-dong, the floor leader of the ruling People Power Party, mentioned the party’s willingness to discuss the additional budget. His remarks followed a proposal by the opposition Democratic Party for an extra budget of at least 30 trillion won ($20.65 billion).

Asia’s fourth-largest economy experienced nearly stagnant growth in the fourth quarter of 2024, impacted by a severe political crisis that has weakened domestic demand, raising concerns about growth as external risks rise under President Trump’s second term.

Growing calls from economists, including the central bank governor, urge the government to draft a supplementary budget to bolster the economy. The Bank of Korea expects South Korea’s economic growth to decelerate to 1.6% or 1.7% this year, down from 2.0% last year.

Choi also asserted that the government would proactively address any domestic consequences stemming from U.S. tariffs by implementing support measures for local companies and diversifying export markets.

Additionally, the government aims to enhance backing for the biopharmaceutical sector and help domestic firms collaborate with manufacturing facilities in the United States, in response to President Trump’s consideration of tariffs on the sector.

> ($1 = 1,452.5800 won)